Friday June 29, 2007

Night race to cost a lot more

THE proposed Formula 1 night race by F1 supremo Bernie Ecclestone is estimated to cost the Government an additional RM20mil, Deputy Youth and Sports Minister Datuk Liow Tiong Lai said.

He said the high cost was due to the need to switch on all the lights in and outside the Sepang International Circuit as well as other necessary preparations.

“The Government is still mulling over the cost factor. That is why we have yet to sign the contract to extend the F1 race in Malaysia from 2010 to 2015.

“But the reason Ecclestone wants us to hold it at night is to enable us to get more (television) viewers from Europe and attract more sponsorship,” he said to a supplementary question by Datuk Kamarudin Jaffar (PAS – Tumpat).

He also said the proposed contract would need the approval of all motor racers in the world and the Formula One International Association.

To another question by Teresa Kok (DAP – Seputeh), Liow said Malaysia benefited from F1’s spillover effects in various areas.

“F1 has attracted more than 600 million viewers and the spillover effects have been a boost to the tourism sector, involving more than RM1bil. It has also enhanced the country’s image.

“The motor sport also attracted 115,000 spectators this year and 30% of them were foreigners,” he said.

Earlier, replying to the original question by Kamarudin, Liow said the Government paid RM130.5mil as “rights fee” to Formula One Management Ltd this year, up from RM98.4mil in 2004 as the fee increased each year.

The returns were RM54,505 this year, RM50,842 last year, RM56,410 in 2005 and RM59,007 in 2004, he said.

Liow also said Singapore’s participation in hosting the motorsport was a positive factor in helping Malaysia promote the sport in the Asian region.

“We will host the race in the beginning of the season and Singapore at the end of the season,” he said.

Liow told the House that the Government had approved RM19.6mil to upgrade and improve infrastructure at the international circuit.

Among the projects that had been carried out were upgrading of the race track, the pit roof, piping and toilet system, and improvement to the paddock area.

Met at the lobby later, Liow said the returns were dropping every year due to reduced corporate sponsorship.

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